For millions of Americans throughout the country, buying a new home is one of the most exciting times in life. An individual or family sits down at the real estate closing, signs all of the appropriate documents and are given the keys to their new home. Most people will always remember that first time they walk in the door of their new home as the new owners. In South Florida, however, there are others eyeing homes in the local area: investors.
According to a recent report, investors from China in particular have taken a keen interest in South Florida real estate transactions. Apparently the local market is more attractive than, say, markets in other major metropolitan areas like New York or Los Angeles. And why shouldn’t it be? Homes and other real estate offerings are seemingly perpetually high-priced in those types of areas, regardless of the years-long depression in the housing market. In contrast, the real estate market in South Florida is bouncing back nicely, but many believe it is still far from topping out.
It appears that most investors who are interested in the South Florida market, and Chinese investors in particular, are looking to buy distressed homes and other properties in order to renovate them and turn them into rental property. Others are using the properties personally, or have family members who use the properties.
Previous posts here have commented on the rise of the foreign investor in the South Florida real estate market. Some of the choicest properties are seeing bidding wars begin between investors and individuals or families who actually intend to live at the property. The ensuing impact is that prices appear to be on a near constant upward trajectory. For both sellers and prospective buyers, this could have a big impact on the final terms of sale.
Source: Daily Business Review.com, “Chinese investors see opportunity in South Florida real estate market,” Paola Iuspa-Abbott, April 26, 2013